Real Vision CEO and former Goldman Sachs executive Raoul Pal is predicting three major powers will govern the crypto industry in the future.
The macro guru tells his 995,500 Twitter followers that the United States, China and a secular global financial system will assert themselves to form a structure of control over the crypto industry, similar to how traditional finance is already operating.
He says the US is likely to adopt sweeping regulations that would leave few able to operate in the industry, creating an oligopoly, while the Chinese Communist Party (CCP) determines who can operate in the crypto industry in Asia.
A global regulatory arbitrage, he says, would connect both powers and form an environment larger than both.
“My best current guess of the global future of the crypto industry…
A US regime of highly regulated and TradFi-integrated major players, small in number and oligopolistic in nature over time.
An Asian regime of one or two key players, CCP approved and global South in nature.
A global regulatory arbitrage regime that connects the two worlds but is larger than both.
Basically, that is how the existing financial system works due to geopolitics, along with technology and other key economic systems.
Capital finds a way. Always.”
Pal is also expecting massive growth in the adoption of crypto and other tech advancements such as Artificial Intelligence (AI) in the not-so-distant future.
“While we are waiting for the next leg of the banking crisis a quick thought…
We are all massively struggling to deal with the outrageous pace of AI and its applications. We ALL feel like we can never keep up.
Reason: I think this is the first true example of Reed’s Law ever. Reed’s Law is Metcalfe’s law to the power of 2, a double exponential.
Good luck. It’s all going to get WILD when we add in the Internet of Things, robots, genome editing, blockchain, space and 5G and 6G. It’s all part of the same Reed’s Law…”
Pal recently predicted Bitcoin (BTC) will increase to $50,000 within a year, driven in part by the US banking crisis.
Bitcoin is trading for $28,309 at time of writing.
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